Victoria's Minister for Mining and Resources discusses why he sees nothing wrong with the mining operation planned in the heart of the Wombat Forest. Hear him detail the process of applying for a permit and of how he feels environmental concerns have been answered by the mining company seeking to remove 5,000 tonnes of soil in the search for gold.

After weeks of requests from ABC News and radio programs, Victorian State Mining Minister Michael O'Brien took to the airwaves with ABC Statewide Drive presenter Nicole Chvastek to address concerns that the mining operation planned for the Wombat Forest had his backing and the approval of all relevant authorities in charge of ensuring compliance with environmental controls.

"This is a process that has been 11 years in the making; the applicants first sought a license back in 2001, there was a six year period of consideration of that application, including consideration of an objection that was lodged by the Wombat foret group," says Minister O'Brien. "The decision to grant a mining license was in 2007, which was under a different Minister and government; and it's taken a further five years for the applicant to come to my department as the regulator, and come up with a work plan for operations on the site which met strict regulatory requirements."

"There is a workplan that has been approved to what initially are very limited works on the site to see if there is any gold left. Don't forget this is a site which has been mined previously and has been logged previously, and I think the company is keen to see if there is any gold left..."

Daylesford's gold-mining history began with the discovery of gold in 1851 and attracted thousands of miners, although alluvial gold discoveries ran out by the 1860s and the remaining quartz-reef based mining operations ceased in the early 1930s. [Read a PDF document giving the full history of mining in the region]

"This is an area that has been mined in the past. This is hardly what you call pristine land, given it's been mined previously and been logged previously," Minister O'Brien repeats, saying "It is a State forest, and Crown lands have always had mining activity occur on them, but they have to be subject to strict rules and regulations..."

"There are some people in the community who are pretty hostile to mining, full stop... As Minister for Energy and Resources it's my job to administer that the Parliament passes, and the Parliament acknowledges that mining activity can add to the benefit of this state.

While the Minister, who represents the seat of Malvern in inner-suburban Melbourne, says he is familiar with the tourist industry of the region, he says the land required for this operation is small and will not impact on any of the tourists who flock to the region every weekend.

"I've visited the area as a tourist myself, and I understand the importance of that industry and the lifestyle in that part of the world; there's nothing in this proposal which would impact on that. We're not talking about large scale mining which people are going to be seeing as they drive up from Melbourne or drive through from anywhere else; we're talking about a relatively small parcel of land where there will be some samples taken simply to establish if there is any commercial quantities for gold there..."

Concerns about headwaters of the Lerderderg River

One of the principal concerns voiced at a public meeting held at Bullarto a fortnight earlier was the mining operation's location - quite close to the headwaters of the Lerderderg River; something the Minister rejects as a problem.

"The Department of Sustainability and Environment, which is the manager of the land... has approved the workplan because they are absolutely confident that the conditions that have been put in place will ensure waters are protected. DSE would object any workplace that didn't protect the waters..." says Minister O'Brien, adding that no processing will occur on site. "In relation to the work taken to separate any gold from the overburdened from what's removed, that will take place offsite.."

"Crown land has had mining activity on it since the year dot. The idea that Crown land is only to be locked up, and not to be sensibly used where mining can co-exist with other activities is not historically what Victorians have accepted.